Why Property Investors Love Birmingham

by Minesh Nandha | Jan 8, 2019

Why Birmingham?
Birmingham is a very fast improving city. It has been ranked in the top 50 of the world’s cities for quality of life and has stolen the highlight of the UK most improved city. Unemployment is falling and investment is boosting the jobs market.

Birmingham has gained a reputation as a hub of innovation and creative industry, adding to its famous and known financial services hub.

With five universities, organisations have a wide choice for hunting talented workers in the district of Birmingham. Many students decide to stay on in the city after graduating, adding to the young population. Birmingham is the youngest city in Europe and providing a huge demand for rental property from young professionals.

As the start of HS2 services come closer, the attraction of Birmingham as a city for business relocation from London is likely to grow. Travel time to London by train will be reduced to just 50 minutes and it is estimated that Birmingham will benefit by adding thousands of new jobs and over a billion pound to its economy.

How does Birmingham property investment measure up?
Birminghams property market is one of the hottest in the UK today and is still very affordable.

Birminghams average house price is around £165,000, which is an increase around 6.5% between 2017 to 2018 – compared to the UK city average of 3.5%.

With the population of Birmingham set to grow over the next two decades, demand for property is set to stay strong in the city. Property prices are lower than in many of the commuter towns that serve London and still Birmingham could become a commuter town due to the HS2.

Comparing London property prices and rental yields, Birmingham is highly attractive. For the cost of an average property in London, you can invest in three properties in Birmingham. Rental yields in Birmingham average around 6%, whereas in the London rental yield is around 3%. The completion of HS2 should support rental yields in Birmingham while pushing property prices higher. Birmingham property prices may increase by 20% to 30% in the next 3-5 years.

Birmingham is one of favourite cities for investment in UK property today. It’s a lifestyle location, offering residents great work and leisure opportunities. For investors, you earn great rental yields from property with a fantastic potential for capital growth at a highly affordable entry level.

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